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What are the consequences of rejection of material?

April 26, 2017consequences material rejection

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What are the consequences of rejection of material?

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Rejected stores lies with the consignee at the risk of the supplier if it is not removed within the stipulated time (14 / 21 days) as advised in the rejection memo.The consequences of rejection are, 1. The purchaser may resort risk purchase.. 2. Rejected material if not lifted in time, ground rent, incidental charges and test charges if any will be recovered. 3. Even if risk purchase is not done, general damages to the extant of 10% will be recovered from the defaulter. 4. Railways may ban business with the firm. 5. Other agencies of purchase of Railways will be advised for similar action. 6. NSIC will be advised for suitable action.